Engineering Cost Management
Building on RLB Pentad’s successful growth into one of the leading quantity surveying practices in South Africa and Africa, we are now well-equipped to provide quantity surveying and cost management services on mining, engineering, and infrastructure projects. Our Engineering Cost Management (ECM) business operates as an independent specialist business within RLB Pentad and provides estimating, procurement, quantity surveying, cost management, and contract administration services to the mining and minerals, infrastructure, engineering, oil & gas, and power & energy sectors of the industry.
Strict financial discipline from an early stage
Experience has shown that it’s most beneficial for clients to involve the ECM team at an early stage in the project cycle. The application of strict financial discipline from an early stage will provide opportunity for the production of a well-structured, complete and accurate estimate, timely and cost-effective procurement, proactive and real-time cost forecasting and cost management. Which includes the cost management of design and project changes, and the prompt close-out of contracts at completion. It is through these principles of financial management that the ECM team strives to significantly influence project outcomes to the benefit of all stakeholders.
A proactive approach
RLB Pentad’s ECM team provides a proactive approach to quantity surveying and contract management, ensuring that the client and professional team are kept up-to-date through regular monitoring and reporting on the financial status of projects and potential risks. This allows the project management team to have consistent transparency of costs which are fully auditable, and to have the benefit of early identification of possible cost overruns and/or underruns, providing adequate opportunity for the consideration of mitigation measures where necessary.
The ECM team operates throughout Africa from its base in Pretoria, but uses support from local offices in South Africa and across the African continent. We employ professional, qualified quantity surveyors, cost managers, and contract administrators who are assigned to clients and projects based on their level of experience and expertise, and specifically to suit the project scope of work and timing.
RLB Pentad’s ECM team has sufficient experience and expertise to provide a full quantity surveying and cost management function for mining, engineering and infrastructure projects, including:
Estimates, feasibility studies and cost advice
These are essential if the correct decisions with full awareness of their financial implications are to be made. We use modern-day techniques, extensive cost data and an intimate knowledge of construction economics to provide accurate and reliable cost advice during all stages of the development of a project.
Advice on tendering procedures and contractual arrangements
The choice of the most appropriate form of contract and measurement system for any given project will depend on the nature of the project, the circumstances under which it is to be carried out, and the particular needs of the client. RLB Pentad’s ECM business is well equipped to advise clients on the most advantageous and appropriate contracting method available, including:
- Contracts incorporating schedules of quantities, schedules of rates, or activity schedules
- Negotiated lump sum or lump-sum turnkey contracts
- Cost reimbursable contracts with or without a target
We are equally well equipped and competent to provide advice on, and to work with the following forms of contract:
- NEC 3
- Various bespoke contract forms
Financial control of contracts
Adjudication of tenders received, the recommendation on most suitable contractor, and the negotiation and compilation of the contract document, the valuation of works in progress, regular pro-active forecasting of estimated final costs, administration of variations and scope of work changes.
Final account settlement
In conjunction with the client’s representative and other consultants, our ECM team will ensure that the financial provisions of the contract are properly interpreted and applied. We ensure that a fair and equitable settlement of the cost of the project is reached in accordance with the contract conditions.
Knowledge and expertise in the fields of costs and contracts provide an ideal platform for the ECM team to advise on the settlement of disputes and claims, and to be called as an expert witness or to act as a mediator of disputes.